Which of the Following Statements About Shareholders' Equity Is NOT

question 22

Multiple Choice

Which of the following statements about shareholders' equity is NOT true?

• A) Shareholders' equity is the excess of assets over liabilities.
• B) Shareholders' equity consists of two main elements: share capital and retained profits.
• C) Shareholders' equity is a residual claim of the shareholders on the assets of the organisation.
• D) Shareholders' equity is the amount shareholders will receive in dividends in the future.

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Definitions:

Displacement

A defense mechanism where an individual shifts negative feelings from the original source of distress to a less threatening person or object.

Regression

A defense mechanism leading an individual to revert to a less mature state of mental development in response to stress or conflict.

Repression

A defense mechanism where distressing thoughts, memories, or impulses are excluded from conscious awareness.

Reaction Formation

Reaction formation is a defensive process wherein unacceptable emotions or impulses are turned into their opposites to avoid conscious recognition.